Ignite LP: Avoiding Team-Risk and Finding True GP–Strategy Fit with Justinas Milašauskas | Ep204

When you think of global venture capital, Lithuania isn’t the first country that comes to mind. Yet in this episode of the Ignite Podcast, Justinas Milašauskas, Investment Manager at Willgrow, shares how a family office from Vilnius has built one of the most disciplined and globally connected venture strategies in Europe.

With over 15 years of experience across trading, institutional sales, and portfolio management — from Amsterdam to Paris — Justinas brings a rare blend of analytical rigor and entrepreneurial spirit to the world of private markets. What started as a family office focused on transport and real estate has evolved into a diversified investment platform spanning buyouts, venture capital, credit, and real assets.

From Derivatives to Venture: A Career Built on Adaptation

Justinas’ journey into finance began early. Growing up in a family of bankers, he was surrounded by financial language long before his first job. After studying econometrics, he launched his career as a trader in Amsterdam and later joined Aegon, a global asset manager, where he managed credit portfolios.

His career path took him through multiple institutional roles — from portfolio management to trading — but the turning point came when he joined a smaller family office in Lithuania. There, he discovered private markets and venture capital, a space that combined his love of numbers with the human side of investing: backing founders, selecting teams, and building trust.

The Birth of Willgrow’s Venture Arm

Willgrow’s story starts humbly — with a single truck in the early 1990s. Decades later, that transport business had scaled into Europe’s largest asset-heavy logistics company, and its founders launched Willgrow as a family office to manage and diversify their wealth.

Today, Willgrow manages relationships with nearly 100 fund managers worldwide, investing across asset classes and geographies. The team of five focuses relentlessly on one principle: manager selection as a source of alpha. Rather than chasing deals or co-investments, they concentrate on identifying fund managers with exceptional strategy fit and proven execution.

“We decided the best idea wins,” says Justinas. “If we don’t find a fund that meets our criteria, we simply don’t invest.”

Why Willgrow Chooses Funds Over Direct Investments

Unlike many family offices, Willgrow doesn’t rush into direct deals or co-investments. The reason? Focus and efficiency.Direct deals, Justinas explains, can consume time and distract from their primary goal: evaluating and backing the world’s best managers.

Instead, Willgrow follows a fund-of-funds approach, building a “bulletproof fund portfolio” before moving into any co-investment strategy. The team spends its time conducting deep diligence, attending global LP conferences, and refining its asset allocation — not chasing the next flashy startup.

Building a Balanced Portfolio

When it comes to allocation, Willgrow applies both discipline and flexibility. Their strategic asset allocation typically targets:

* 30–35% in buyouts

* 20–25% in venture

* 10% in credit

* 10% in real assets

* The rest in liquid markets

Each asset class is meaningful but not oversized. They periodically reassess assumptions — like expected IRRs and risk dispersion — to adjust course as markets evolve. Venture IRRs, for instance, have cooled from 29% in 2021 to around 14–15% today, prompting Willgrow to incorporate secondary funds for better liquidity and shorter durations.

Sourcing GPs and Avoiding Red Flags

Being based outside major financial hubs poses unique challenges. To overcome this, Willgrow invests heavily in relationships — partnering with fund-of-funds, established LP networks, and on-the-ground advisors.

When evaluating GPs, Justinas prioritizes what he calls “GP-strategy fit” — ensuring that a manager’s experience and expertise align with their fund’s thesis. First-time GPs are welcome, but first-time teams are a red flag. “Team risk is the biggest risk,” he says. “If they haven’t worked together before, that’s an automatic no.”

He also looks for managers who are credible within their networks, operate with transparency, and have evidence of thoughtful decision-making. Track record matters, but so does the story behind each investment.

From Concentration to Diversification

Willgrow’s early approach leaned toward concentration — larger checks in fewer funds. But as venture markets became more competitive and AI blurred the lines between winners and copycats, the firm adapted.

Now, they write smaller checks across a wider range of managers to capture more opportunities while reducing idiosyncratic risk. It’s a reflection of Willgrow’s core philosophy: stay consistent in process but flexible in execution.

Inside the LP’s Due Diligence Playbook

For emerging GPs hoping to work with family offices like Willgrow, Justinas offers practical insights.

A well-organized data room is essential — with detailed investment schedules, ownership breakdowns, co-investor lists, and concise deal memos. “Every data room can be better,” he laughs. “There should be a standard by now.”

LPs don’t need glossy presentations; they want clarity, structure, and evidence of thought. Willgrow reviews sample deal memos — including hits and misses — to understand how a GP reasons through decisions. And while references help, off-sheet backchanneling remains key to gauging credibility.

Lessons from Four Years of Venture Investing

After four years in venture, Justinas admits that some early assumptions have changed. Ticket sizes are smaller. Diligence cycles are longer. Patience matters more than ever.He’s also learned that manager selection is as much art as science — requiring intuition, relationships, and humility in equal measure.

Looking Ahead: The Future of Willgrow

Willgrow’s next chapter focuses on fine-tuning fund selection, expanding global reach, and backing the best emerging managers — especially at Fund II, where there’s more track record and stability.

The firm plans to deepen its presence in the U.S., Europe, and Israel while exploring opportunities in India and Latin America. “The goal,” Justinas says, “is simple: meet the best managers in the world — and back them early.”

Books, Mindsets, and Lasting Lessons

When he’s not analyzing funds, Justinas looks to books for perspective. His favorites include Why Nations Fail, a deep dive into why some economies thrive while others collapse, and Leading by Sir Alex Ferguson, whose approach to talent mirrors Willgrow’s investment philosophy: find the right people early and nurture them to greatness.

Ultimately, Justinas believes success in venture — like in leadership — belongs to those who stay curious, humble, and yes, a little paranoid. “The paranoid will survive,” he quotes. “Those who constantly adapt will thrive.”

Key Takeaway

Willgrow’s rise from a local family office to a global LP powerhouse offers a playbook for long-term investing:

* Stay disciplined. Never chase deals for the sake of activity.

* Build relationships. Your network is your best source of truth.

* Diversify wisely. Flexibility is key in fast-changing markets.

* Invest in people. The best returns often come from trust and partnership.

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Chapters:00:02 Early life in Vilnius and family influence in finance

03:00 Starting career as a trader in Amsterdam

04:10 Transition from public markets to family office investing

05:30 Discovering venture capital and building early networks

06:25 Joining Willgrow and professionalizing the venture journey

07:45 Lessons from angel investing and early portfolio wins

09:45 Evolution of Willgrow from transport and real estate to investments

11:50 Growth into a diversified global investment platform

13:00 Five core investment areas at Willgrow

14:10 Why Willgrow focuses on funds over direct deals

16:30 Building a “bulletproof” fund portfolio strategy

18:10 Strategic asset allocation and balancing risk across classes

20:40 How Willgrow sets portfolio weights and long-term targets

22:40 Shifts in venture returns and performance assumptions

23:50 Managing liquidity and duration through secondaries

25:55 Currency exposure between U.S. and European investments

28:20 Sourcing fund managers and building LP networks

30:40 Partnering with fund-of-funds and global advisors

31:00 GP–strategy fit as a key selection criterion

32:30 Evaluating track records and past success indicators

33:00 Investing in first-time GPs and assessing credibility

34:20 Soft referencing and network-based validation

35:00 From concentrated bets to diversified fund portfolios

37:20 N